EBRD finances the first biogas project under USELF program

EBRD will provide EUR 4.2 million to Ecoprod agri company based in Donetsk region for the construction of 1.5 MW biogas facility. EBRD will provide financing of EUR 3.1 million for 7 years, while the Clean Technology Fund will provide another EUR 1.1 million for 15 years.

Ecoprod’s facility will be able to produce 5.8 million cubic meterso of biogas per year that will be used for production of electricity (that will be sold to the wholesale electricity market at the green tariff) and heat (that will be used for own needs of the company). The overall cost of the project is EUR 6 million with 5 years estimated as investment payback period.

This is the first biogas project financed under USELF program. According to EBRD, EUR 40 million from the first tranche of USELF financing were already used for financing small and medium size renewable projects in Ukraine. Remaining EUR 30 million should be spent before the end of 2013 – current plan is to finance 5-6 more projects, including biomass, biogas, small hydro and solar projects. There are plans to extend USELF program and increase its volume by another EUR 70 million coming from EBRD and the CTF in the nearest year.

Official EBRD press release – http://www.ebrd.com/pages/news/press/2013/130606a.shtml (in English) and http://www.ebrd.com/pages/news/press/2013/130606b.shtml (in Russian)